Post offices have played a major role in developing India, connecting people from all over the country, bridging gaps and strengthening bonds. Going beyond their traditional duty, post offices in the country also double up as excellent centres for people to invest their hard earned money. Government backing and a vast network make post offices an extremely viable option when it comes to depositing money, with schemes like the National Savings Certificates playing to the strength of a post office. These savings bonds issued by the government can be purchased at post offices across India, with different options available to individuals, suiting their needs and requirements.
Post Office NSC Schemes
Individuals who wish purchase National Savings Certificates from post offices have two options to choose from, as mentioned below.
- VIII Issue (5 years scheme) – National Savings Certificates purchased under this scheme are issued for a period of 5 years. Investments made towards this scheme earn an interest of 8.5% which is compounded half yearly and are suitable for those looking for short term investment modes.
- IX Issue (10 year scheme) – National Savings Certificates purchased under this scheme are issued for a 10 year term. Investments towards this scheme earn an interest of 8.8% which is compounded half yearly.
Post Office NSC Forms
Post offices utilize different forms to streamline and expedite the process revolving around post office National Savings Certificates. A total of 15 forms are in use for this scheme which can be downloaded from the internet or availed from the post office directly. Some of the major forms are mentioned below.
- Form NC 71 – This is the application form which individuals need to fill out in order to purchase National Savings Certificates.
- Form NC 32 – This form can be used to transfer the scheme from one post office to another.
- Form NC 29 – This form is used to issue a duplicate savings certificate in the event of the original one being lost/stolen/damaged.
- Form NC 41 – This form can be used to transfer NSCs for purpose of security (in the event an individual is taking a loan by keeping the certificate as collateral).
- Form NC 34 – This form can be used to transfer a certificate to another individual.
Features and Benefits
Some of the features and benefits of Post Office National Savings Certificates are mentioned below.
- High interest – These certificates earn an interest of 8.5% and 8.8% compounded half yearly for the VIII issue and IX issue respectively, ensuring an investment multiples over time.
- Loans – Individuals can use these certificates as collateral against bank loans.
- Income Tax Rebate – Investments are eligible for a rebate under Section 80C of the Income Tax Act.
- Certificate transfer – Certificates can be transferred to other individuals if an original owner intends to do so.
- No upper limit – There is no upper limit when it comes to the investment amount, ensuring that individuals can invest according to their financial capacity.
- Universal - These certificates can be purchased by both adults and minors, with an option for an adult to purchase it on behalf of a minor.
- Simple - Purchasing these certificates is simple, with a vast network of post offices ensuring speedy implementation.
Post Office NSC Interest Rates*
The interest rates for National Savings Certificates vary according to the term of their maturity. Schemes purchased under the VIII issue, for a 5 year period earn an interest of 8.5% which is compounded half yearly.
Certificates purchased under the IX issue, with a term of 10 years earn an interest of 8.80% which is compounded half yearly.
*Note - These rates are decided by the government and are subject to change as per regulations.
Important NSC Related Reads
- Documents Required for National Savings Certificate
- How to Calculate NSC Interest
- Loan Against National Savings Certificates
- National Savings Certificate Maturity
- National Savings Certificates Tax Benefits
- NSC Application Form from Post Office
- NSC Post Office Interest Rate
- NSC Post Office Saving Scheme
- NSC Rules and Guidelines
- Know About NSC Transfer Online
- National Savings Certificate Withdrawal Rules
- NSC vs FD
- NSC vs KVP
- NSC vs ELSS
- How to Use NSC as Security for Your Loans